By By Ncaba Ntshakala
The Minister of Commerce, Industry, and Trade, Mancoba Khumalo, has recently issued a statement to all exporting companies in Eswatini, urging them to seize the transformative opportunities presented by the African Continental Free Trade Area (AfCFTA) for enhanced market access and economic growth.
The AfCFTA, is a monumental initiative aimed at strengthening economic integration and intra-Africa trade. It offers a strategic pathway for Eswatini to maximize its export potential and leverage the vast market opportunities within the continent.
The AfCFTA Implementation strategy, officially launched on 7 March 2024, under the visionary theme “to provide a strategic roadmap for Eswatini to maximize benefits under the AfCFTA targeting an annual regional export growth of 10%,” sets the stage for Eswatini to capitalize on the immense potential of the African market.
It is said that with promoting diversified and value-added goods, the AfCFTA seeks to spur investment, innovation, and economic dynamism across African countries, thereby stimulating sustainable development and prosperity.
The Minister has shared that at the core of the AfCFTA’s appeal lies its vast market size, encompassing 1.3 billion people spread across 54 countries, with a combined GDP of E63.7 trillion (approximately US$3.4 trillion).
The Minister emphasized the significance of this expansive market, highlighting its potential to unlock unprecedented opportunities for Eswatini’s exporters and propel the nation towards a trajectory of sustained economic growth and development.
In line with the launch of trade by all Southern African Customs Union (SACU) countries as of 31 January 2024, Minister Mancoba Khumalo expressed the importance of Eswatini’s exporters embracing the AfCFTA to expand their reach to countries in West and North Africa, as well as those beyond sub-Saharan Africa. While acknowledging the current focus of Eswatini’s exports on SACU, Southern Africa Development Community (SADC), and Common Market of Eastern and Southern Africa (COMESA) countries,
The Minister highlighted the AfCFTA’s role in opening up new market access opportunities and extending preferences to regions such as the Economic and Monetary Community of Central Africa (CEMAC), Economic Community of West Africa (ECOWAS), East African Community (EAC), and countries above Sub-Saharan Africa, including Tunisia, Algeria, Egypt, and Morocco.
To facilitate exports under the AfCFTA and enable exporters to capitalize on preferences, Minister Khumalo outlined the requirement for exporters to apply and register with the Eswatini Revenue Services to obtain the certificate of origin (CoO). The CoO serves as a customs document attesting that products originate from Eswatini and are eligible for preferential treatment within the AfCFTA framework.
Further, the Minister announced the forthcoming visit of the AfCFTA Secretariat to Eswatini in May 2024, which will provide an opportunity for engagement with traders and potential traders on the benefits of exporting under the AfCFTA.
In addition, Minister Mancoba Khumalo encouraged stakeholders to access further information on the opportunities offered by the AfCFTA through dedicated channels, including the AfCFTA website and relevant government departments.
Traders can visit; https://au-afcfta.org/wp-content/uploads/2024/01/Unpacking-the-African-Continental-Free-Trade-Area-A-Glossary_03-April-2023.pdf or send enquiries to the International Trade Department at mahlalelalp@yahoo.com and khetsiwekd@gmail.com, EIPA at mnisisg@sipa.org.sz or call 2404 0470 and ERS at NNxumalo@ers.org.sz
The African Continental Free Trade Area (AfCFTA) is a free trade area encompassing most of Africa. It was established in 2018 by the African Continental Free Trade Agreement, which has 43 parties and another 11 signatories.
Making it the largest free-trade area by number of member states, after the World Trade Organization, and the largest in population and geographic size, spanning 1.3 billion people across the world’s second largest continent, Africa.
Exporting companies are at an advantage – Economist
Speaking to Sipho Mdzebele, a Swati economists’ lecturer at the University of Kwazulu Natal (UKZN) has shared that there are many advantages for exporting companies in Eswatini in the market and they stand to gain from seizing the expansive market offered by the African Continental Free Trade Area (AfCFTA).
Mndzebele said, “First and foremost, participation in the AfCFTA presents Eswatini with an unparalleled platform to amplify its economic footprint across the African continent.”
The economist said that capitalizing on this vast market of over a billion consumers, exporting companies in Eswatini can significantly expand their customer base and diversify their revenue streams.
“This enhanced market access not only augments the export potential of Eswatini’s goods and services but also supports greater resilience against external economic shocks.” Added Mndzebele.
Moreover, he asserted that through increased trade volumes and economies of scale, exporting companies can optimize their operational efficiencies, thus strengthening their capacity to offer goods and services at more competitive prices.
“This, in turn, enables Eswatini to carve out a larger share of the continental market, positioning itself as a formidable player in regional trade dynamics.” Said the economist.
Additionally, the AfCFTA is viewed as a catalyst for intra-African investment and industrial development, which is said to lay the groundwork for sustainable economic growth in Eswatini.
“As exporting companies tap into new markets and forge strategic partnerships across the continent, they catalyze the flow of capital, technology, and expertise into the country,” asserted the economist,
“This influx of investment will spur innovation and upgrade local production capabilities and also creates more employment opportunities in the country. Such helps in uplifting livelihoods and stimulating socio-economic development.”
